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What Can You Do With a Contractor License

Introduction

When discussing what can you do with a contractor license, it is important to note that there are several avenues. A general contractor’s license is a valuable credential that opens up a world of opportunities in the construction industry. Obtaining this license demonstrates your expertise, professionalism, and compliance with local regulations. Not to mention, many states have challenging testing and application requirements. It is important to review your state’s application and testing requirements before you begin. This will help you have less mistakes during the application and testing process. By passing the exams, you demonstrate that you are knowledgeable in the field and highly knowledgeable in general.

In this article, we will explore the various avenues that become accessible to individuals who hold a general contractor’s license. From managing construction projects to starting your own contracting business, let’s delve into the possibilities that await those who acquire this prestigious qualification.

Construction workers, rebar installation, concrete preparation
Photo by Josue Isai Ramos Figueroa on Unsplash

Managing Construction Projects

What can you do with a contractor license? One of the primary roles of a general contractor is to oversee and manage construction projects from start to finish. Holding a general contractor’s license allows you to take on a leadership position, coordinating all aspects of the construction process. This includes collaborating with architects, obtaining permits, hiring subcontractors, managing budgets, and ensuring compliance with building codes and safety regulations. As a licensed general contractor, you have the authority to supervise and direct the construction work, ensuring that projects are completed efficiently and to the highest quality standards.

Leadership positions can often times be granted to those who hold a contractor’s license. This is because of the value that it brings to the company. In many states, a company must be licensed and have a qualifying agent. A qualifying agent is the person that has passed all required exams to achieve the license for the company. If you serve as a qualifying agent, you are quite valuable to the company because you are the key piece to them legally operating in that state. By you holding a license in a state that your company wishes to expand to, you are a key asset.

If a qualifying agent of a company sells the company, moves on to a new company, or passes away, the license is no longer valid for the company he or she was serving. During a situation like this, you would become an extremely valuable person to keep operations going. This can also be helpful if an investor is looking to start a construction company but does not have the knowledge or time to pursue his or her license.

Starting Your Own Contracting Business

When understanding ‘what can you do with a contractor license’, starting a business often comes to mind. Perhaps one of the most significant advantages of holding a general contractor’s license is the opportunity to establish your own contracting business. With this license, you have the legal authority to bid on construction projects and enter into contracts directly with clients. Starting your own business allows you to be your own boss. You are able to set your rates, build a reputation, and select the projects you want to work on. As an entrepreneur, you can specialize in specific types of construction, such as residential or commercial, and grow your business according to your vision and goals.

However, keep in mind that starting a contracting business involves additional responsibilities, including managing employees, marketing your services, and handling financial aspects. We recommend training on these as well if you are planning to become your own boss.

Starting a construction company is often the goal of students preparing to take their contractor’s exam. Having the ability to control your own time and make your own money is appealing to most. With a contractor’s license, not only do you demonstrate your knowledge, but you also have the ability to legally perform work. Most states have a low dollar value that is allowed before a contractor’s license is required. The penalties for not having a contractor’s license and performing work over the state’s limits can be critical. It is important to have the license you need to perform work in your state.

Subcontracting and Consulting

When thinking about what can you do with a contractor license, subcontract work does not always come to mind. As a licensed general contractor, you have the option to work as a subcontractor or consultant for other construction firms. Subcontracting involves partnering with larger contractors to provide specialized services within a project. This allows you to focus on your area of expertise while benefiting from the established network and resources of the primary contractor. Additionally, you can offer consulting services to clients or other contractors, leveraging your experience and knowledge in the construction industry. Consulting can involve providing guidance on project planning, estimating, regulatory compliance, or resolving construction-related issues.

Becoming a subcontractor gives you the ability to partner with larger general contractors to begin getting your foot in the door. Starting up a business can be challenging to finding leads. Being a subcontractor can help you start to generate leads.

Consulting is a great opportunity to make money on the side, full-time, or even a fun retirement plan. Consulting can allow you to be more in control of your time and only accept jobs that you want or need. Having a general contractor’s license allows you to demonstrate that you have the professionalism to be a consultant.

Photo by Shane McLendon on Unsplash

Government and Public Sector Projects

A general contractor’s license often becomes a prerequisite for participating in government and public sector projects. These projects can range from infrastructure development to public building construction. Holding a license positions you as an eligible candidate to bid on and secure government contracts. This Provides opportunities to work on large-scale projects with stable funding sources. Government projects often require stringent qualifications, and having a general contractor’s license enhances your chances of winning bids and competing in the public sector market.

Conclusion

Obtaining a general contractor’s license opens up a plethora of possibilities in the construction industry. It enables you to manage construction projects, start your own contracting business, subcontract for larger firms, provide consulting services, and access government and public sector projects. The license validates your expertise and compliance with industry standards, boosting your credibility among clients and industry professionals. However, it’s essential to remember that with great opportunities come responsibilities. We hope that this article helped give you a better understanding of ‘what can you do with a contractor license’? Pursuing a general contractor’s license requires dedication, continuous learning, and a commitment to upholding the highest standards of professionalism, quality, and safety in the construction industry.